A delegation of the International Monetary Fund (IMF) is set to arrive in Pakistan on Friday to help prepare the federal budget for the fiscal year 2025-26.

The visit is intended to allow talks with Pakistani authorities on tax steps, revenue policies, and expenditure restraint. The budget for next year, which is likely to be tabled during the first week of June, will also encompass discussions on development spending.

The Ministry of Finance has estimated a big jump in tax collections in the coming fiscal year, with a revenue target of Rs 15,270 billion, an increase of Rs 2,300 billion over the current year.

In an effort to continue curbing tax evasion as part of its reforms, the Federal Board of Revenue (FBR) approved the setting up of a Directorate General of Special Measures and two directorates in its headquarters. This initiative aims to improve coordination between field formations and eliminate unnecessary hurdles in the tax collection process.

The move aims to enhance coordination between field formations and eliminate unrequired impediments in the tax collection system. Last month, Finance Minister Muhammad Aurangzeb confirmed that Pakistan had successfully negotiated a $1 billion loan instalment with the IMF.

The news was announced in a high-level meeting at the Prime Minister's Office, where Prime Minister Shehbaz Sharif was assuaging fears raised by the business community.

The Prime Minister, at the meeting, asked if the Memorandum for Economic and Financial Policies (MEFP), which was a key document setting out the conditions of loan disbursement, had been dispatched by the IMF. To this, Aurangzeb replied that all was well and the IMF would be putting out an official statement on Saturday.